Tag Archives: cost

It may seem crazy sometimes, but mail continues to be the best way to engage donors or potential donors in our work.

Direct mail is both and art and a science… but it’s not rocket science.

Here are my 10 categories to consider in advance of your next DM appeal.

I know it’s boring and uninspiring, but let’s be realistic: the amount of money we have available to us drives what we do. If we think about what we’ve budgeted for before we get going on a campaign, we can allow the budget to guide us rather than limit us. It can help us determine how many people to mail, how many components to include in the mailing, what kind of paper to use, etc. If we realize that we need to increase the budget to achieve our goals, that’s fine, but think about the budget before anything else… and it won’t become our enemy.

Next (somewhat driven by cost): Who are you mailing? Existing donors? Prospective donors? Females? Males? Both? How many people? Are they in your charity’s geographical area, or outside of it? Are they really engaged and generous donors? Donors who are long-lapsed? Your audience drives so much of what you’re going to do in any given mailing, so let this be your second consideration.

Obviously the main goal for any campaign is to raise money, but we also have the opportunity to get insights beyond the dollars we bring in. Before you start really planning for your mailing, determine whether you have the budget to do some testing. If you do, think about what you want to find out: will a more aggressive dollar amount ask generate more revenue or will it freak donors out? Does referencing your donors’ location in the world lift response, or does it make little difference? Think about it. The opportunities are endless, and it’s worth using some of your budget for.

OK, onto creative. Creative is somewhat dependent on the story you decide to tell in your mailing, but it’s also determined by budget, audience, and testing opportunities. What do you have the money to do creatively? Can you use something more exciting than a #10 envelope? Can you include some full-colour photos in the letter, or an insert to expand on the ask? Or – let’s go crazy – can you create a video to accompany the mailing? The creative needs to be aligned to other things in the package, but it’s better to get a sense of your parameters early on.

I know this seems crazy, but only now is it really key to determine what you’re asking for. You may know already; it may be unrestricted funds like it always is. Or you might have a really urgent ask to make. However your process works, it’s now time to finalize the key priority you want to inspire the donor with, and you also want to figure out the ask amounts and how they might be based on the segment the donor falls into, their past giving, etc.

These things aren’t really in a critical order, but if you haven’t figured it out already, it’s time to determine your story. The more personal, the better. If you can tell an individual’s story, that’s ideal. This story should be determined by some of the decisions you’ve already made; maybe it’s based on the audience you’re mailing. Maybe it’s part of a test. Maybe it lends itself to some creative you want to work with. Or maybe it ties perfectly to the ask you want to make. Whatever it is, make it inspiring!

Just like we have to think critically about who sits across from the donor in a 7-figure major gift ask, we have to think about who “signs” a fundraising appeal. Who’s appropriate? Who matters to the donor? Whose voice do we want to use? We know that people are more motivated to give when someone they know asks, so we have to think about that just as much in direct mail. Have you always used your CEO? Great! Could it be worth testing another signatory? Probably! Just make sure you’re thinking about it strategically. It matters.

OK time for a #donorlove break! Before you actually write this awesome and inspiring letter, think about the decisions you’ve made. Then think about the donor. Are they synced up, or is there some disconnect? If there’s a disconnect between the donors’ needs and the decisions you’ve made, then you need to stop and reconsider. Are you doing a test that could alienate donors? Be careful! Is the ask you’re making inspiring, or just an urgent need? Maybe you can do better! Is there truly a story in your letter, or is it organizational jargon? STOP. Think about the donor. If you need to make some changes, do. It needs to be about the donor.

So the letter’s written, the creative’s created, and the package is nearly there. Time to consider variability (if not before this stage). Variability is your chance to speak to different donors within this larger group you’re mailing. Maybe you’re mailing regular donors and you want to acknowledge whether they gave recently, last year, a few years ago, or it’s… *cough*… been a while. Or maybe this is an acquisition mailing and those receiving it are made up of internal people (a.k.a. really inactive donors) AND external people (a.k.a. rental lists). You might want to acknowledge those groups differently. Make sure you consider this before you go any further; the more a donor – or potential donor – feels like you’re speaking to them, the more moved to give they will be.

And finally – YOU. No, not YOU… the donorYOU. This is the final step. Take out the package, take out your red pen, and “circle the you’s”. This mailing isn’t about us – the fundraiser or the organization. It’s about the donor. It’s meant to speak to them, inspire them, and move them. So review your package and make sure you’re seeing many more “YOU”‘s than “WE”‘s. If you’re not, be prepared to start again. It’s worth it.

All fundraisers are closet data nerds. We love to pore over a spreadsheet of data and see what’s going on in our programs.

But if you had to say you focused on one number above the rest, what would it be?

I surveyed my Twitter followers, LinkedIn network, and email list, and here’s what they said:

Net revenue

Participation (combination of expected retained donors + new donors)

# of new donors

# of new young donors

Difference in dollars raised year-over-year

Total dollars raised (this is what I answer to at the board level – they have a finite term)

Total dollars raised

Total dollars raised

Conversion rate

Total dollars raised (short-term)

# of new donors (long-term)

As you can see, there’s a decent mix of metrics in there. Not to say this is a comprehensive sample, but I’d say us fundraisers are on the same page for the most part in terms of what we look at.

I was most interested by those who referenced the word term – “finite term”, “short-term”, “long-term”. That’s why I wanted to write about this in the first place.

Are we focusing on the right numbers?

I’m not going to pretend for a second that I know the number we’re supposed to be focusing on. Or that there even is such a number! I’m just observing that more often than not, we’re looking at our programs from a few inches away, rather than from a bird’s eye view.

We need to step back and think big picture.

We need to say, “Okay, so total dollars raised are coming up short of last year, is there anything I can see in last year’s data that would support that?”

Or even better, “The number of new donors this year is fewer than last; we’re going to have trouble with second gift conversion next year, and therefore total dollars, if we don’t focus more on acquisition.”

And that leads me to another number that no one mentioned, but I think a lot of managers, especially, get caught up in.

Cost. Expenses.

“We’re spending more than last year. We need to pull back!”

But stop – how does your increase in expenses translate into fundraising results? Are you seeing better results? Can you project that what you’re doing this year will translate into better – and more sustainable – growth in future years?

Because if so, try to stomach the expenses in the short-term. The long-term return on your investment will be worth it.

So take a step back. Think critically. Look closely at data, and then look at data from afar. You might not see it the same way.

What’s YOUR number? Share in the comments.

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Written by Maeve Strathy

Maeve is the Founder of What Gives Philanthropy and has been working in fundraising for over eight years. Click here to learn more about Maeve.